Location: Colleton County, SC | Metro: Charleston-North Charleston, SC MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $231,192 | 0.62% | D |
| 3BR | $1,770 | $374,962 | 0.47% | F |
| 4BR | $2,040 | $466,351 | 0.44% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 29472 (Ridgeville, SC) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1380 cover the debt service on a $327,336 property?
Yes. At an average annual interest rate of 4%, the debt service on a $327,336 property would be approximately $13,094 per year or $1,091 per month. The FMR of $1380 per month clearly exceeds this amount, indicating that the rental income can cover the mortgage payments.
No. If the interest rate is higher, say 5%, the debt service would be around $16,367 per year or $1,364 per month. In this scenario, the FMR does not cover the debt service, making investment less attractive.
It Depends. For interest rates between 4% and 5%, the outcome is uncertain. A landlord must calculate their exact debt service based on their financing terms to make a definitive decision.
2) Is the market rent of $996 above, at, or below the FMR?
Above. If the market rent were above $1380, it would indicate a strong local rental market where Section 8 properties might struggle to compete. However, given the current market rent of $996, it is below the FMR, which means Section 8 properties are priced competitively and can attract tenants.
At. If the market rent equaled the FMR, it would suggest that Section 8 properties are priced in line with the market, but there's no premium to be gained. This is not the case for Ridgeville, SC.
Below. With the market rent at $996, it is below the FMR, indicating that Section 8 properties can command a higher rent compared to the general market, making them a better investment option.
3) Are 16.0% renters and N/A-day days on market (DOM) enough demand?
Yes. If the percentage of renters is sufficient and the DOM indicates quick leasing, then the demand is high enough. However, since the DOM is listed as N/A, we cannot conclusively determine the speed of leasing. Assuming that the percentage of renters alone is indicative of demand, 16.0% suggests a moderate tenant pool.
No. If the percentage of renters was significantly lower, or if the DOM was very high, indicating slow leasing, then the demand would not be strong enough to support Section 8 investments.
It Depends. Given the limited data on DOM, the decision hinges on the landlord's tolerance for vacancy risk. A 16.0% renter population is moderate; landlords need to consider other factors such as competition, property condition, and location within the zip code.
In summary, if the debt service is covered by the FMR and the market rent is below the FMR, investing in Section 8 properties in ZIP 29472 can be profitable. However, the moderate renter population and unknown DOM suggest that while there is potential, careful consideration of additional risks is necessary before making an investment decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.